Carbon capture and storage and international negociations.

Controlled CO2
|
Diversified fuels
|
Fuel-efficient vehicles
|
Clean refining
|
Extended reserves
Carbon capture storage
and
International Negotiations
© IFP
Paula Coussy (IFP)
Minh Ha Duong (CIRED)
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau.
Outlines
CCS and International Negotiations
CCS and the Kyoto Protocol

CCS and CDM/JI mechanisms

CCS and the EU-ETS

A Post Kyoto agreement ?
© IFP

2
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
CCS technology dedicated against climate change
was not fully recognized in the Kyoto Protocol and
in the initial European Emission Trading Scheme,
but...
© IFP
Some discussions at international and European
levels are under way and results are expected
during 2009...
3
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
Current status of CCS projects
no appropriate accounting categories under the KP
(IPCC guidelines for National Greenhouse Gas
Inventories) for fugitive emissions and removals of
CO2 from CCS projects

no CMP agreed guidance for allowing CCS as CDM
project activities

CCS projects not fully included in the current
(2008-2012) EU-ETS (except Art. 24)
© IFP

4
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
CCS and Kyoto Protocol
CCS and national inventories – IPCC recommendations

Parties use Revised 1996 Guidelines for National
Greenhouse Gas Inventories of the IPCC to
estimate and report emissions.


No appropriate categories for fugitive emissions from
CCS
2006 IPCC Guidelines for National Greenhouse
Gas Inventories address CCS projects (Chap. 5)

© IFP

CCS addressed
not yet come into force !
5
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
CCS and Kyoto Protocol
CCS and national inventories – IPCC recommendations

2006 IPCC guidelines:

emissions from fossil fuel use along CCS chain


reported in the national inventories as energy use (in the
stationary or mobile energy use)
fugitive emissions (transport, injection and storage)
reported in "CO2 Transport, Injection and Geological
Storage"
 4 systems: Capture and compression, Transport, Injection
and Storage system
© IFP

6
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
Address by Yvo de Boer, Executive Secretary
UNFCCC in Vienna, 19 March 2009
"... CCS is still expensive. If CCS is to be employed at
a large scale it requires funding that closes the costgap between energy production with and without CCS.

Discussions are under way on whether the
continuation of the carbon market beyond 2012 could
enable CCS to be included in the Kyoto Protocol.s
Clean Development Mechanism (CDM). The
Executive Board of the CDM has been tasked with
assessing the implications of including CCS under the
CDM."
© IFP

7
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
CCS and Kyoto Protocol
CDM/JI and CCS

Two CCS/CDM projects have been submitted to
the UNFCCC EB:


no agreement on the methodology proposed
reached in COP/MOP4 (Dec 2008) : boundary,
leakage and permanence.
© IFP

"White Tiger "project (Sept 2005)
"Bintulu LNG" project (January 2006)
8
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
CCS and Kyoto Protocol
CDM/JI and CCS issues

Main physical leakage issues:




Main permanence and liability issues:


Site selection: nothing specifically defined
Monitoring methods for leakage emissions: adaptive
process
Acceptable level of leakage emissions : what reality ?
accounting framework and long term liability after the
crediting period
Main project boundary issues
international waters, several projects and one reservoir,
migration of CO2 from one country to another after
injection
© IFP

9
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
CCS and Kyoto Protocol
CDM/JI and CCS

Decision on guidance on the CCS in the CDM at
COP/MOP 2009 in Copenhagen:




© IFP

security of storage: what leakage rate ?
site selection criteria and monitoring guidelines to be
defined
project boundary: several projects and one storage,
crosses national boundaries : need of collaborative
monitoring and reporting
long term accounting and liability issues
...
10
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
CCS and EU-ETS
CCS and revised EU-ETS Directive

Current EU-ETS Directive (2003/87/CE): Phase 2


CCS excluded but MS have an opt-in option under Art.
24. CO2 stored will be credited as not emitted.
Revised EU-ETS Directive :CCS & EU-ETS Phase 3

© IFP

CCS is listed in Annex I and so fully included in EU-ETS
from 2013 onwards
capture will be regulated under IPPC Dir., pipeline
transport under Environmental Impact Assessment Dir.
11
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
CCS and EU-ETS
CCS and revised EU-ETS Directive
no free allocations for CCS whatever the sector
 CO2 captured and stored is considered as not emitted into
the atmosphere thus no allowances are required

2013 onward: no free allowances for electric sector but
auctioning will be the rule.
 in the electric sector : or invest in CCS or buy allowances
by auctioning

if CO2 leakage appear during the EU-ETS phase 3 : restitution
of allowances is required.
© IFP

12
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
CCS and EU-ETS

what is missing ?

a CCS monitoring & reporting guidelines in the EU-ETS in
line with CCS Dir. obligations :

fugitive emissions of CO2 at injection facilities, volume of
CO2 injected, CO2 stream composition, pressure and
temperature...etc.
to clarify the aids at European and national levels to fill
the cost gap between with and without CCS

transposition in national legislation of the Directives EUETS and CCS
© IFP

13
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
CCS and International Negotiations
CCS and the Kyoto Protocol : 2006 IPCC

CCS and CDM/JI mechanisms : COP/MOP Dec2009 ?

CCS and the EU-ETS : Phase III – national
transposition – M&R guidelines

A Post Kyoto agreement ?
© IFP

14
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau
Post Kyoto agreement ?

Bali (2007) – a decision to negotiate


Bali Action plan mandate to finish negotiations on a global
climate agreement by 2009 to enter into force 2013
Process via two negotiation streams




AWG-KP ("Kyoto track")
AWG-LCA ("Convention track)
Copenhagen (2009) – Deadline
Post – 2012...


© IFP

targets ?
Role of the US ? advance developing countries ? carbon
capture and storage ?
no clarity before last days in Copenhagen (Dec 2009)
15
P.Coussy. DEV. Dep Economy – Carbon Capture Storage and International Negotiations. 10 April 2009. Pau